PAVmed Inc. Q1 FY2025 earnings call

Management Statement and Operational Highlights

• Corporate Structure: PAVmed is a diversified commercial life science company with multiple independently financed subsidiaries operating under a shared services model.
• Lucid: Strengthened balance sheet via $16.1M public offering, reported revenue $800k, test volume 3,034. Made progress on new sales channels (concierge medicine, employer market) with impact expected in H2 2025. Awaiting response from MolDX program regarding Medicare coverage for e-cigar.
• Veris: Restarted development of implantable monitor, re-engaged with FDA with favorable engagement, close to finalizing commercial partnership with OSU, pilot program with OSU complete.
• PMX: Focused on PortIO, accelerating discussions with strategics interested in the space.
• Biopharma Expansion: Interest in biopharma space, partnership with board member Dr. Sundeep Agrawal who brings biotech experience. PAVmed aims to leverage its infrastructure, management services structure, and access to public capital to pursue biopharma opportunities, leveraging its clinical research team and experience with early-stage assets.

Segment Performance

• Lucid: Reported revenue of $800,000 in the last quarter with a test volume of 3,034 (within the target range of 2500 - 3000 tests per quarter). PAVmed is the single largest shareholder of Lucid diagnostics with approximately 29% of the common shares outstanding. Lucid strengthened its balance sheet with a $16.1 million public offering, resulting in pro forma cash of $40 million at the end of Q1 2025, extending runway well into 2026.
• Veris Health: Recently completed financing to restart development of a key implantable physiologic monitor, re-engaged with FDA, and is close to finalizing a long-term commercial and strategic partnership with OSU. The pilot program with OSU is complete, and the commercial agreement aims to enroll at least 1000 patients in the first year and 300 Veris implants once cleared.
• PMX (Incubator): Focused on PortIO, an implantable intraosseous device, with discussions accelerating with several strategics interested in the space.

Guidance

• Lucid: Expect initiatives (concierge medicine, employer market) to impact revenue in H2 2025. Await Medicare coverage response from MolDX program.
• Veris: FDA filing for implantable monitor targeted for H1 2026. Commercial agreement with OSU to enroll at least 1000 patients in the first year and 300 Veris implants once cleared.
• PMX: Hoping to secure a strategic partnership for PortIO that includes strategic investment to relaunch and initiate clinical trials.
• Biopharma: Aim to pursue biopharma opportunities in the near term, leveraging infrastructure and partnerships.

Risks

• Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Risks are detailed in PAVmed's most recent annual report on Form 10-K and subsequent filings with the SEC, including factors affecting future operations.

Question and Answer

• Q: How are the feedback from the Veris pilot program and any changes to the platform before full commercialization?

A: Excellent feedback, all pre-specified performance metrics met. No immediate changes to the platform needed; learned implementation lessons from working with OSU, such as utilizing their call center and adjusting alerts.

• Q: Rationale for biopharma expansion and financing model?

A: Leveraging PAVmed's infrastructure, management services structure, access to public capital, and model of independently financed subsidiaries. Biopharma assets in early stages struggle to raise private capital, and PAVmed aims to leverage its clinical research team and experience. Subsidiaries raise their own capital, as seen with Lucid and Veris.

• Q: Has market volatility affected capital raising?

A: No, PAVmed was fortunate to have investors aligning with its vision. For example, the first quarter financing for Veris was successful, and access to investors for biopharma opportunities is expected when the time is right.